What Warren Buffett sees...and why Berkshire Hathaway is going local

I've been fascinated for years with Warren Buffett - but it's not his investing acumen that holds me. It's his thinking process.

Long ago, I heard Buffett say in an interview that even though he was and is great friends with Bill Gates, he didn't invest in Microsoft because he (Buffett) didn't understand what the company did. He invests in what he understands.

That's why the core of Berkshire Hathaway's companies is insurance, furniture, jewelry stores, executive jet services, manufactured (mobile) homes... All part and parcel of living your life.

Even his stock acquisitions follow suit. Coca Cola. Wells Fargo Bank. American Express. His logic remains the same.

He's also a great believer in the United States. It's only been relatively recently that he's begun looking at investments out of the country.

Back at home, a few years ago he bought a railroad. When everyone was saying that rail is as good as dead, he bought BNSF - the second largest freight railroad network in North America. It gets real things from one place to another.

In 2012, he started buying real estate agencies and put them all under the brand Berkshire Hathaway Home Services. State by state, he's buying up more agencies and putting them under the same brand.

This month, he announced that he has purchased the Van Tuyl Group of automobile dealerships. It comes complete with 79 dealerships and 100 franchises in ten states with something in the vicinity of $8bn in annual revenues. (Buffett will know, to the penny, exactly how much.) The plan is to start buying more. Then more...all branded as Berkshire Hathaway Automotive.

There are two things to learn here. The first is easy: Use your brand. Build your name and then use it to brand everything you possibly can. The more trust you've created, the more likely that people will find their way to your door - no matter what the product or service might be.

The second is more a trajectory thing. A thinking process. It's about local.

Buffett, possibly more than any other investor, knows about global. While his companies may be US-headquartered, they operate globally.

Yet, when he looks at what is coming next, what he seems to be seeing - at least based on his investments - is a hunkering down and in. A focus on an immediacy of life and its needs. On building a quality of life on a day-to-day basis.

It may be that, simply by virtue of his age (he's 84, after all), he's thinking more of home and hearth than ever before.

Possibly, but I doubt it. His filter for thinking is investments. He wouldn't be putting his or his shareholders' money toward some vanity project because he's in his 'declining' years.

Buffett sees Main Street and he sees it growing. He recognizes that there's a virtual world out there, but he, his companies and his investments aren't part of it. He sees something else. Something much closer to home.

He sees that humans have needs they want provided in a human and basic way - locally, in person, with a high quality of service, focus and attention.

At least that's what his most recent major purchases seem to be saying.

I think you should pay attention, if for no other reason than Buffett's track record. Because, realistically, if Buffett says it's worth doing, you can put your money on it...right along-side his.